Quarterly report pursuant to sections 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
 9 Months Ended
Jul. 31, 2013
Jul. 31, 2012
Cash flows from operating activities:    
Payments to suppliers, employees and consultants $ (2,645,397) $ (2,199,910)
Cash received from sales of products and services 2,130 5,325
Dividend received    13,463
Interest received 868 2,817
Net cash used in operating activities (2,642,399) (2,178,305)
Cash flows from investing activities:    
Disbursements to acquire short-term investments in certificates of deposit    (1,200,000)
Proceeds from maturities of short-term investments in U.S. government securities and certificates of deposit 500,000 2,498,947
Proceeds from sale of Digital Info Security Co. Inc. common stock 1,135   
Payments for purchases of property and equipment (1,811) (1,600)
Net cash provided by investing activities 499,324 1,297,347
Cash flows from financing activities:    
Proceeds from issuance of convertible debentures 1,765,000   
Proceeds from sale of common stock, net of expense 589,865   
Proceeds from exercise of warrants to purchase common stock 380,800   
Proceeds from exercise of stock options 25,610 208,450
Proceeds received on sale of common stock held by ZQX Advisors, LLC 24,138   
Net cash provided by financing activities 2,785,413 208,450
Net increase (decrease) in cash and cash equivalents 642,338 (672,508)
Cash and cash equivalents at beginning of year 339,693 774,040
Cash and cash equivalents at end of period 982,031 101,532
Reconciliation of net loss to net cash used in operating activities:    
Net loss (7,153,332) (2,392,296)
Common stock issued 168,475  
Common stock issued to acquire patent license 42,000   
Provision for excess inventory 26,490   
Amortization of convertible debenture discount 893,149   
Loss on extinguishment of debt 343,517   
Common stock issued to pay interest on convertible debentures 69,939   
Other 9,000 5,835
Change in operating assets and liabilities:    
Prepaid expenses and other current assets 8,574 3,829
Accounts payable and accrued liabilities 572,180 132,261
Derivative liability (315,189)   
Deferred revenue    (940,010)
Net cash used in operating activities (2,642,399) (2,178,305)
Supplemental disclosure of non-cash financing actives:    
Stock Issued upon Conversion (1,180,000)  
Employees [Member]
    
Reconciliation of net loss to net cash used in operating activities:    
Stock option compensation 2,118,424 111,105
Common stock issued    861,364
Non-Employees [Member]
    
Reconciliation of net loss to net cash used in operating activities:    
Stock option compensation 574,374   
Common stock issued 168,475 39,607
Stock Issued Upon Conversion Of Debenture [Member] | Debenture Conversion Feature [Member] | Convertible Debenture Warrant [Member]
    
Supplemental disclosure of non-cash financing actives:    
Stock Issued upon Conversion 214,819   
Stock Issued Upon Conversion Of Debenture [Member] | Debenture Conversion Feature [Member]
    
Supplemental disclosure of non-cash financing actives:    
Stock Issued upon Conversion 1,180,000   
Stock Issued Upon Conversion Of Debenture [Member]
    
Supplemental disclosure of non-cash financing actives:    
Stock Issued upon Conversion $ 1,075,000